Global events’ risks suppress Indian equities
Mumbai, Dec 14 (IANS) Risks of upcoming global economic events, coupled with negative global indices, suppresed the Indian equities markets during the mid-afternoon trade session on Wednesday.
Domestic investors awaited the decision of the US FOMC (Federal Open Market Committee) on whether or not to raise key interest rates during its monetary policy review later in the evening.
Besides, key domestic macro-economic inflation data points which showed a decceleration failed to buoy investors’ sentiments.
The two benchmark indices traded on a flat-to-negative note, as heavy selling pressure was witnessed in metal, automobile and capital goods stocks.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged down by 25.75 points or 0.31 per cent to 8,196.05 points.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 26,707.91 points, traded at 26,654.11 points (at 1.45 p.m.) — down 43.71 points or 0.16 per cent from the previous close at 26,697.82 points.
The Sensex has touched a high of 26,736.34 points and a low of 26,547.05 points during the intra-day trade so far.
The BSE market breadth was tilted in favour of the bears — with 1,476 declines and 969 advances.
“Caution prevailed in the equity markets as investors awaited the US FOMC decision. The Indian rupee is also rangebound,” Astha Jain, Senior Research Analyst at Hem Securities, told IANS.
According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, IT stocks faced resistance at higher levels due to profit booking, while banking, pharma, auto, oil-gas, textile and aviation stocks also traded with bearish sentiments.
“Media-entertainment, FMCG, cement and power sector stocks also traded with bearish sentiments due to selling pressure,” Desai said.
“USD/INR futures prices traded almost flat providing no clear direction to the Indian equity markets price movement.”
On Tuesday, the equity markets were lifted by bargain hunting, along with positive Asian and European indices.
The barometer index was up 182.58 points or 0.69 per cent, while the NSE Nifty edged up by 51 points or 0.62 per cent.